[News Article] Apple's market value ends above $3 trillion for first time
Apple's market value
ends above $3 trillion for first time
By Tiyashi Datta,
Reuters - Apple Inc's (AAPL.O) stock market value ended a trading session above
$3 trillion for the first time on Friday, lifted by signs of improving
inflation and bets that the iPhone maker will successfully expand into new
markets. Shares of the
world's most valuable company jumped 2.3% to $193.97, giving it a market
capitalization of $3.05 trillion, Refinitiv data showed. It was Apple's
fourth straight record high close. The Cupertino,
California company's market capitalization briefly peaked above $3 trillion in
intraday trading on Jan. 3, 2022 before closing the session just below that
mark. Heavyweight growth
stocks including Apple, Nvidia Corp (NVDA.O) and Tesla Inc (TSLA.O) rose
sharply after a Commerce Department report showed the Personal Consumption
Expenditure price index advanced less in May than in April, reflecting progress
in the Federal Reserve's fight against inflation. Apple has surged 49%
so far in 2023 in a rally by several of Wall Street's most valuable companies,
fueled by bets that the Fed is nearing the end of its campaign of interest rate
hikes, and by optimism about the potential for artificial intelligence. Apple's most recent
quarterly report in May showed revenue and profits fell but still beat
analysts' expectations. Along with a steady track record of stock buybacks, the
financial results reinforced its reputation as a safe investment at a time of
global economic uncertainty. "It's a
testament to one of the greatest publicly traded companies that's ever existed.
It continues to grow and diversify its revenue streams, has
shareholder-friendly management, buys back shares, throws off a dividend and
has a fortress balance sheet with strong and defendable cash flows," said
Art Hogan, chief market strategist at B. Riley Wealth. Apple's $3 trillion milestone
follows the June 5 launch of a pricey augmented-reality headset, its riskiest
bet since the introduction of the iPhone more than a decade ago. The stock has climbed about 7%
since then, compared to the S&P 500's (.SPX) 4% rise. Recent gains in Apple's shares
have outpaced analysts' estimates for the company's future earnings. It is now
trading at over 29 times expected earnings, its highest since January 2022,
according to Refinitiv data. That compares to a median PE ratio of about 13 for
the S&P 500 technology index (.SPLRCT). Four other U.S. companies have
valuations of more than $1 trillion - Alphabet Inc (GOOGL.O), Amazon.com Inc
(AMZN.O), Nvidia and Microsoft Corp (MSFT.O), which follows Apple with a market
value of $2.5 trillion. Shares of Tesla and Meta
Platforms Inc (META.O) have more than doubled this year, while a 190% gain in
shares of Nvidia has catapulted the chipmaker into the trillion-dollar club. Source: https://www.reuters.com/technology/apples-market-value-breaches-3-trillion-mark-again-2023-06-30/
2023.07.05